If possible I could use some advice on my debt problem. A while back I decided that I needed to do something about my debt because I simply couldn’t keep up on the payments. I wanted to avoid bankruptcy at the time because I felt that I should at least make good on some of my debt.
I checked around and decided on a debt settlement program. I went with DMB Financial because they were rated high on the TASC site. So far they have settled two of my debts (one is almost finished) but I recently received a threat of a lawsuit which was actually served in a summons.
DMB helped me set up a payment plan to avoid any further action (a hundred dollars a month). Just the other day I received another threat from the same law firm that was representing the previous credit card this time on a different credit card. My problem now is that after 23 years I have lost my job (store closing).
I will soon be on unemployment and I don’t know if I’m going to be able to handle another monthly payment on top of everyday needs (food, gas, insurance, etc.). I may not even be able to stay with DMB. I’m to the point where I don’t what my next step is. Soon I will be living on a VERY fixed income and I see no options out there for me. Do you have any advice for me that could aleviate a lot of stress and help me get back on my feet.
Thanks for your time.
When working with any debt relief provider the first step would be to contact them and ask for feedback about the hurdle you are facing. In your case that would be DMB Financial. If you did speak to them about this situation, what did they say about the most recent suit when you brought it to their attention?
The idea that you should or will be able to continue making debt settlement payments while you are on unemployment is probably a bad one. Unemployment benefits don’t make you rich, they provide a minimal standard to help you get by and don’t include an allowance to pay bills with it.
Unemployment is also limited. So without a replacement job the benefit income will run out at some point and you will be unable to care for yourself. If you continued making the debt payments through your unemployment and it runs out you will then be in a worse position, with your debts not resolved and no income.
It would be prudent for you to speak with a local bankruptcy attorney. You don’t need to go talk to them with the intention of filing bankruptcy but you need to educate yourself about the benefits it can provide you in this situation. Bankruptcy could block all lawsuits, stop all payments, and give you a fresh start.
Another option would be to do nothing, let the creditors sue you, and deal with the judgments when you find another job. Since the creditors could not garnish your unemployment benefits, it is a possible path to follow. But I don’t think that is a wise course. Standing by, doing nothing, and letting yourself get sued will increase your stress and life pressure at a time when life will be hard enough as it is.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.